Gold had a shaky start to the week, being dragged below 3000 psychological level briefly, alongside broader risk asset liquidation. But as stock markets across Asia extended their crash into Monday, the precious metal caught some safe haven flows and bounced back above 3030 quickly.
Meanwhile, a critical 2950/60 zone appears to be providing strong support for Gold too. Reaction to this zone would unveil whether the intensifying global trade tensions and deepening equity losses are re-anchoring Gold as a defensive asset.
The 2950/60 zone marks the confluence of 2956.09 resistance turned support, 38.2% retracement of 2832.41 to 3167.62 at 2960.46, and trend line support at 2957.62.
Technically, break above 55 4H EMA (now at 3075.81) will set the range for sideway consolidations. That would also keep outlook bullish for extending the long term up trend at a later stage.
However, sustained break of 2950/60 will argue that Gold is also in medium term correction, with risk of falling back to 2584.24/2789.92 support zone.
